Investing in real estate in India has continued to be NRIs’ preferred investment choice since it offers a wide range of options for locations, a thriving economy, and the possibility for large returns.
Many Non-Resident Indians (NRIs) are encouraged to return to India or invest in immovable property in India as a safe investment option because of the alluring offers that real estate in India has to offer.
Several other elements, such as the weak rupee, alluring discounts, and the market downturn, have recently contributed to a significant increase in NRI investments in the Indian real estate market. The sinking rupee and the unpredictability of other investment opportunities have made real estate in India an attractive and safe option for NRIs.
Following are the Checklists Before Investing in Real Estate in India:
1. Hire a lawyer
You should always have a reliable lawyer by your side while purchasing real estate, especially for legal and financial matters. It is always preferable to hire a lawyer who can help streamline all the legal processes, particularly for all of your legal guidance and financial matters.
There are always those gaps that can let you down, regardless of how diligent you are. A lawyer will assist you with all the paperwork and legal procedures needed to complete the transaction. Become well-versed in Indian law.
Also Read: Best Cities for Real Estate Investment in India
2. Verify documents as needed.
NRIs seeking profitable and hassle-free real estate investment opportunities in India must exercise due diligence by confirming the property’s legality before investing in Real Estate in India.
It is necessary to confirm important information, such as the current owner of the property, its history, and any disputes that may have occurred.
The full list of documents required for property registration is an important item on the checklist for NRI investors. An NRI, PIO, or OCI must have the following documents to purchase real estate in India:
- Address Proof
- OCI or PIO Card (for PIO and OCI)
- Passport (for an NRI)
- PAN Card (Permanent Account Number)
- Photos the size of a passport
3. Payment of tax
An NRI is required to pay tax on any investments they make in real estate located in India. The same tax benefits available to Indian nationals also apply to NRIs.
The main source of taxation for an NRI selling a property in India is profits or capital gains. These taxes are assessed at various rates depending on whether the capital gains are short-term or long-term.
The tax will be calculated in the same manner as it is for an Indian citizen. Nonetheless, NRIs can request a deduction for head reimbursement, stamp duty, and the registration price that was incurred when purchasing a property thanks to Section 80c.
Also Read: Benefits of Investing in Commercial Real Estate in India for NRIs
4. Know your property type
Although NRIs enjoy most of the same rights as Indian residents, they are prohibited from investing in several particular categories of real estate. You can invest as an NRI in any type of property in India, including residential and commercial properties.
Retail, data centers, warehouses, and other commercial properties are also included in this. It is therefore even more crucial for children to be conscious of their decisions.
The main restriction for NRIs is that they aren’t allowed to invest in farms or agricultural land unless they inherit it or get it as a gift.
5. Down payment
If you have a home loan to invest in real estate, this step is quite important. Payme You must think about opening NRO (non-residential Ordinary)/NRE (non-residential external) accounts as a requirement if you are an NRI intending to buy real estate in India.
According to RBI regulations, almost all of your financial operations, including loan repayment, purchasing, and selling, must be conducted through either an NRO or NRE account.
Payment to the seller of the property can be done easily by any standard channels, such as cash, bank checks, or checks drawn on an NRE, FCNR, or NRO account if you took out a house loan to purchase the property.
6. RERA status
Whether an Indian citizen or non-resident Indian, this is a necessity. Every housing project in India that is currently under development must be certified in accordance with the Real Estate (Regulation and Development) Act, 2016. (RERA).
All housing projects are not created equally, even those that have RERA approval. The best bet for a secure real estate investment is projected by reputable developers.
Currently, every project in India has a RERA number. As a result, you must inquire about the project’s RERA registration in order to determine whether the property is legitimate or not. Thus, make sure you and your builder have a thorough discussion about this.
7. Choose a reputed builder.
When investing in real estate, you should thoroughly investigate the real estate developer. Make sure you are aware of their previous endeavors because this will help you decide whether or not they align with your preferences.
For NRI investors, choosing a reputable and trustworthy builder is crucial when investing in real estate in India. As one piece of advice for NRIs investing in the Indian real estate market, this is the most crucial thing to keep in mind.
It aids in averting later undesirable circumstances. Partnering with reputable and ethical builders who often have all the necessary certifications and clearances in place may be convenient for NRIs.
Conclusion
Long-term NRI real estate investment has numerous more significant advantages. Purchasing a home is a major decision. It is an investment that needs sufficient time and investigation.
The Indian real estate market is a logical choice for NRIs to invest in because it can withstand any stresses and sustain even the global economic downturn.
Additionally, the laws and regulations in place in India are far more forgiving, allowing NRIs to participate in the Indian real estate market in any number of ways. With the assistance of the best real estate company in India, you must invest in real estate.
